If you were diagnosed with an illness or suddenly had an injury that prevented you from working, do you know how you could survive financially? If you don’t have a plan to pay the bills, you could end up racking up debt or even losing your home if things get really bad. If the pandemic has taught us anything, it’s that anything can happen to anyone, so it’s best to be prepared.
This does not constitute advice and advice should be sought in all instances before acting on it. The Financial Conduct Authority does not regulate tax advice.
Why you need income protection
Since no one is immune to the risk of illness and accidents, it’s always best to have income protection insurance. Even if you don’t have a spouse or any dependents, you alone are important enough to have a plan to protect your income. A long-term absence could be detrimental for anyone, but especially if you’re self-employed as you don’t have any sick pay to fall back on.
Income protection insurance is a long-term insurance policy that provides monthly payments to replace your income until you are able to work again, until you retire, your death, or the end of the policy term, whatever happens first. Some people might think that income protection is out of their reach, but there are plenty of affordable options. And at the end of the day, some coverage is better than none at all.
There is a waiting period before you are able to receive payments, so if you are eligible for sick pay, you can set it up to start once that ends. Or if you have any other kind of insurance coverage, after that ends. But keep in mind that the longer you wait, the lower the monthly payment will be. The great part about income protection is that you can claim as many times as you need to while your policy is in effect.
Your premium will depend on your specific policy and how much coverage you have, and it will also depend on some lifestyle factors such as your age, your history of smoking, your health (current and family history), your occupation, and how much of your income you would like to replace. Compared to critical illness cover, income protection actually covers a wider range of conditions, so there is a good chance that whatever illness or injury comes your way, you’ll be covered.
Even though some people don’t like to think about something happening to them, if they do, they think it won’t happen for a long time, but the fact of the matter is that illness and injury don’t discriminate and both can happen at any time.
Do you need help getting covered?
If you unexpectedly experienced an accident or were suddenly diagnosed with an illness, could you still keep your head above water? Having a plan to cover your basic everyday expenses, household bills, and rent or mortgage payment is essential for your peace of mind. And with income protection you can rest easy. For a review of your current situation and for advice on how to ensure you’re fully covered, get in contact with the experts at Dental & Medical Financial Services today.